Oil down in Asian trade

Wednesday, 15 December 2010 00:01 - - {{hitsCtrl.values.hits}}

SINGAPORE (AFP) - Oil weakened in Asian trade Tuesday on profit-taking after gains in New York driven by OPEC’s decision to maintain its existing output targets, analysts said.

New York’s main contract, light sweet crude for January delivery, was off 41 cents at 88.20 dollars a barrel and Brent North Sea crude for January delivery sank 24 cents to 90.95 dollars.

The price decline is seen as a temporary blip with oil on track to hit 100 dollars amid strong demand especially from China, the world’s top energy consumer.

“While prices are already poised to hit 100 dollars a barrel at some point in 2011, with a growing sense of comfort with current price levels... that process is likely to get sped up and prices could well test the level earlier than our current forecast of the second half of 2011,” Barclays Capital said.

“Despite the lack of action at the OPEC meeting, the huge 2010 demand shock continues to work its way through the data.”Oil prices first hit 100 dollars in January 2008.

The Organisation of the Petroleum Exporting Countries (OPEC) decided Saturday to hold its production quotas at a meeting in Quito, emphasising the looming risks to the fragile global economic recovery.

The 12-nation cartel said the economic growth that had pushed oil to two-year highs above 92 dollars a barrel last week was likely to slow next year.